Updated Estimate of net revenue per ton for FP From another investment of mine,also producing refractory concentrate , I have found an excellent example as to how to refine my estimates of net revenue per ounce of concentrate produced.
It cost that mine $50 US per ton of concentrate to process and smelt its concentrate .
Knowing that the mass pull of the FP plant is 4.1 %, it can easily calculated that 950,000 tons or ore entering the plant will be reduced to about 40,000 tons of concentrate which @$50 US per ton will cost the FP concentrate $2 million US to be smelted to 99.9% market standards.
With annual production of about 40,000 ounces, and with each ton of concentrate containing about 1 ounce of gold, each ounce of gold will cost us just $50 per ounce to process and smelt.
Transportation costs depend on distance to the smelter which is equipped to process, roast and smelt refractory ore.
Examining freight rates per distance, it will cost us anywhere from $50 per ton for a close by plant to about $150 per ton to, say, China.
Choosing the latter, I estimate about $200 per ounce as the maximum costs to process the Selinsing concentrate .
With POG now about $1750 per ounce, we would receive about $1550 for our concentrate .
That is a signifucantly better than my earlier estimates that we would lose 25% of spot POG